Accounting for Insurance and Insurance financing.

So I have 7 different insurance policies for our company.
7 invoices. They all are then combined into one finance ad split over 10 payments.
So what would be the best option?
Cr Debtors for 7 invoices
Dr Insurance accounts for all 7 invoices.

But then what?
Would I open one bank account for insurance finance and set all 7 invoices as paid from it and then each month transfer Direct Debit payment to insurance finance account.

Or would I put Insurance premium on liabilities?
Dr Debtor (one amount for all 7 invoices so they don't show as outstanding)
Cr Debtors for Insurance finance? and then match Direct Debits each month??

Something seems bit not right



  • andrew96
    andrew96 Registered Posts: 10
    Do you sell insurance?
  • sabgermane
    sabgermane Registered Posts: 4
    No, just some insurances for company like liability, vehicle some office and computer insurance. They all obtained through the same insurance broker, so that's why they all have been put on one finance agreement
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